In the short-term trading session, the 15-minute BTC/USD chart shows the formation of a descending triangle pattern. This bearish pattern typically appears after a strong decline, indicating the continuation of the bearish trend.
This is a phase where sellers pause but buyers are not strong enough to reverse the trend. The price slightly recovers but remains weak, forming a contracting triangle with lower highs and higher lows. If the price breaks down below the support line of the descending triangle with high volume, the bearish trend will be confirmed.
The RSI line is above the average line, indicating a temporary recovery. If RSI cannot break through the 60 threshold and turns down, it will confirm a stronger sell signal. Trading volume tends to decrease during the formation of the triangle. This reflects a lack of buying momentum and aligns with the characteristics of the descending triangle pattern, where buyers appear to be weak.
- The descending triangle pattern is a continuation signal of the bearish trend, indicating the possibility of breaking down.
If the price breaks the support area of the descending triangle at 102,500 with high volume, it is likely to continue falling towards deeper support levels like 101,500 or 100,800.
- Conversely, if the price does not break down and bounces back above the resistance area of 103,000, a short-term recovery may occur, but the risk of a bullish trap still exists.
TRADING STRATEGY:
Strategy 1: SHORT
Entry: Short sell when the price breaks below 102,500 with a strong bearish candle and increased volume.
TP: Next support area 101,500 or 100,800.
SL: Set above the breakout area by about 50 points (~103,000) to guard against false signals.
Strategy 2: LONG
Entry: If the price surpasses the 103,000 area with high volume, a buy order may be placed.
TP: The next resistance area around 104,000.
SL: Below the breakout area by about 50 points.